By: Canales H.B. No. 3418
A BILL TO BE ENTITLED
AN ACT
relating to the implementation by the Texas Department of
Transportation of a vehicle mileage user fee pilot program and a
task force to assist in developing and evaluating the program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 502, Transportation Code, is amended by
adding Subchapter M to read as follows:
SUBCHAPTER M. VEHICLE MILEAGE USER FEE PILOT PROGRAM
Sec. 502.501. LEGISLATIVE PURPOSE. (a) The purpose of this
subchapter is to assess the feasibility of eliminating the state
gasoline and diesel tax, also known as the motor fuel taxes, and
other user fees for transportation.
Sec. 502.502. DEFINITIONS. In this subchapter:
(1) "Motor fuel taxes" means the motor fuel taxes
imposed under Chapter 162, Tax Code.
(2) "Pilot program" means the vehicle mileage user fee
pilot program.
(3) "Task force" means the vehicle mileage user fee
task force.
Sec. 502.503. TASK FORCE. (a) The vehicle mileage user fee
task force is established to guide the development and evaluation
of the vehicle mileage user fee pilot program to assess the
potential for mileage-based revenue as an alternative to the
current system of taxing highway use through motor fuel taxes.
(b) The task force shall consist of seven members appointed
as follows:
(1) one member appointed by the lieutenant governor;
(2) one member appointed by the speaker of the house of
representatives;
(3) one member appointed by the chair of the standing
committee of the house of representatives having primary
jurisdiction over transportation;
(4) one member appointed by the chair of the standing
committee of the senate having primary jurisdiction over
transportation; and
(5) three members appointed by the governor.
(c) The task force shall:
(1) conduct at least three public hearings gather
public comment on issues and concerns related to the pilot program;
(2) make recommendations to the department on the
design and on the criteria to be used to evaluate the pilot program
and other alternative approaches to motor fuel taxes; and
(3) evaluate the pilot program.
(d) In conducting hearings under Subsection (c)(1), the
task force shall:
(1) publish notice in accordance with Government Code
551, referred to as "The Open Meetings Act"; and
(2) publish notice on the department's website; and
(3) provide interested persons with an opportunity to
submit their opinions orally and in writing.
(e) The department may create and maintain a website to
allow members of the public to submit comments electronically.
(f) On request, the department shall assist the task force
in implementing this subchapter.
Sec. 502.504. PILOT PROGRAM. (a) The department, in
consultation with the Texas Department of Motor Vehicles and the
Texas A&M Transportation Institute, shall develop and implement a
statewide pilot program to assess a user fee on owners of commercial
motor vehicles that is based on the number of miles traveled on
public highways in this state by those vehicles.
(b) The pilot program must:
(1) include not more than 300 commercial motor
vehicles, the operators of which will have on-board
vehicle-mileage-counting equipment added to their vehicles,
administered in a manner the department considers appropriate;
(2) test the reliability, ease of use, cost, and
public acceptance of technology and methods for:
(A) counting the number of miles traveled by
motor vehicles;
(B) reporting the number of miles traveled by
particular vehicles; and
(C) collecting payments from participants in the
pilot program; and
(3) analyze and evaluate the ability of different
technologies and methods to:
(A) protect the integrity of data collected and
reported;
(B) ensure operators' privacy; and
(C) vary pricing based on the time of driving,
type of public highway, proximity to transit, vehicle fuel
efficiency, participation in car-sharing or pooling, or the income
of the operator.
(c) The pilot program may not last less than one year.
Sec. 502.505. COMPENSATION OF PARTICIPANTS. The department
by rule shall establish a process to ensure that participants in the
pilot program are not required to spend more on fees or taxes
associated with road usage than if they had not participated in the
program. A process adopted under this section may include a refund
of motor fuel taxes paid by the participant or other compensation.
Sec. 502.506. CONFIDENTIALITY OF INFORMATION. Identifying
information about participants in the pilot program is confidential
and is not subject to disclosure under Chapter 552, Government
Code.
Sec. 502.507. REPORT. Not later than September 1, 2026, the
department shall submit to the legislature a report summarizing the
results of the pilot program, including:
(1) the feasibility of permanently assessing a vehicle
mileage user fee;
(2) an evaluation of the impacts of a vehicle mileage
user fee on the economy, the environment, and traffic congestion;
(3) a comparison to other alternative approaches or
supplements to motor fuel taxes; and
(4) the department's recommendations together with
suggested legislation necessary to implement the recommendations.
Sec. 502.508. APPLICATION FOR FEDERAL FUNDING. The
department shall submit an application to the United States
Department of Transportation for funding in federal fiscal year
2023 for the Surface Transportation System Funding Alternatives
Program established in the Fixing America's Surface Transportation
Act (Pub. L. No. 114-94) to help fund the pilot program. If the
application is not successful, the department shall apply in each
federal fiscal year in which grants are made available for
demonstration projects under this federal program or until the
application results in full or partial funding for a vehicle
mileage user fee pilot program, whichever first occurs.
Sec. 502.509. EXPIRATION OF SUBCHAPTER. This subchapter
expires November 1, 2026.
SECTION 2. This Act takes effect September 1, 2023.